Op-ed: My kids have credit cards and yours should, too

Adding children as authorized users on credit cards is a growing trend among parents, with over six million American parents having at least one minor child with a card.

While it may seem like giving kids unrestricted spending power, it’s actually a strategy that can help them learn responsible money management.

Banks typically allow authorized users to be as young as 13 years old, and you remain responsible for any charges made by your child.

However, this gives them the opportunity to practice using credit and learn valuable lessons while you still have oversight.

By keeping the card secure and supervising its use, you can help your child develop smart spending habits and avoid financial pitfalls.

It’s essential to establish clear ground rules, discussing limits, acceptable purchases, and payment responsibilities.

This fosters open conversations about money, building a foundation for a healthy financial future.

Some banks do not report authorized user activity to credit bureaus for minors, so it’s important to consider the impact on your child’s credit history.

However, it can still be beneficial for them to experience credit usage and build positive habits from an early age.

To balance trust and oversight, you can add your child as an authorized user but keep possession of the card, ensuring they have emergency access without the risk of misuse.

Additionally, you can set lower credit limits to limit their spending power.

By implementing these strategies, parents can guide their children towards financial success and prepare them for responsible credit use in the future.